Buzz Bingo reports £241m revenue as tax hikes double pre-tax losses

The British bingo giant Buzz Bingo is currently navigating a paradoxical economic phase. On one hand, there is impressive growth in customer engagement and revenue; on the other, exploding operational costs and tightened tax legislation are pushing the company deep into the red. With total group revenue of £241 million for the 2025/2026 fiscal year, the company achieved an 11 percent increase compared to the previous year. Nevertheless, the balance sheet shows a grim picture regarding profitability. Pre-tax losses widened from £33 million to a staggering £65 million.

Particularly striking is the trend among the younger target group. Buzz Bingo seems to have successfully shed the dusty image of a game for retirees. Approximately 190,000 new customers visited the clubs, half of whom were under 35 years old. In the second half of the year, the number of new customers under 25 even increased by 16 percent. This highlights the operator's strategy to position bingo as an affordable and social leisure experience. However, this popularity has not yet translated into profits due to external factors. Higher employer National Insurance contributions and the increase in the National Living Wage drove total staffing costs for the 2,229 employees to £61.4 million.

Numbers and facts

The detailed results show a clear split in the business. The retail sector, consisting of physical bingo halls, increased its revenue by 11 percent to £192 million. This was aided by investments of £25 million, which flowed into the modernization of locations. Among other things, over 10,000 electronic bingo terminals were installed and Wi-Fi was improved. The online segment also grew by 11 percent to £49.1 million. The growth in new digital customers was impressive, reaching 30 percent. Nevertheless, underlying EBITDA fell from £42 million to £39 million.

A massive blow was the increase in Remote Gaming Duty from 21 percent to 40 percent, effective from April 2026. This tax burden led to a goodwill impairment of £18.4 million. Management had to fundamentally revise its cash flow forecasts for the online business downwards. Buzz Bingo is responding by reducing dependence on expensive online customer acquisition and instead trying to pull the loyal base from stationary clubs into the digital ecosystem.

Background

Since 2023, Buzz Bingo has been following a five-year turnaround plan. The core is the so-called omnichannel strategy. The goal is to offer customers a seamless experience between physical club visits and playing via an app. The flagship product Big Money Live has already awarded £4.2 million in prizes in this context. CEO Dominic Mansour sees this link as the decisive competitive advantage over pure online providers who have no physical presence.

"Our omnichannel strategy places Buzz in a unique position in the market. We have a large and highly loyal retail customer base and much of our online growth is a result of our ability to convert retail players to play online." - Dominic Mansour, CEO Buzz Bingo

Although Bingo Duty for the retail business will be abolished starting April 2026, the financial challenges remain enormous. The group's net liabilities amounted to £256.5 million at the end of the period, with interest-bearing borrowings of around £322.4 million. Support from majority owner Intermediate Capital Group (ICG) and a credit facility from Barclays Bank currently secure liquidity for modernization projects.

Why it matters for German players

For German players, the situation at Buzz Bingo has no direct impact, as the provider does not hold a license from the Gemeinsame Glücksspielbehörde der Länder (GGL) and therefore cannot legally operate in Germany. However, the example shows the dangers of excessive tax burdens. In Germany, a 5.3 percent stake tax on online slots and poker has been in effect since the 2021 Interstate Treaty on Gambling. This has already led many legal providers to lower their payout rates or withdraw from the market entirely. German players should strictly ensure they only play at providers on the GGL whitelist. Only there do protection measures apply, such as the monthly deposit limit of 1,000 euros, LUGAS monitoring to prevent multiple gambling, and the stake limit of 1 euro per spin. Anyone playing at unlicensed MGA or Curacao casinos not only faces legal risks but also enjoys no protection from German authorities.

What it means for GGL-licensed casinos

The development in the UK market serves as a warning signal for the German market. When taxes and operating costs rise so sharply that even growing companies suffer high losses, the legal offering comes under pressure. Legal German casinos already have to clear high regulatory hurdles. A further tightening of tax conditions could lead to players migrating to the unregulated black market, where no taxes are paid and no player protection exists. The industry will closely observe whether German politicians follow the British path or maintain a balance between tax revenue and the marketability of the legal offering.